Cough up the green tax

Thursday, 18 February 2010

So yesterday the 2010 National Budget was presented by Minister of Finance, Pravin Gordhan. With the tumultuous state of our finances year in and year out, this day has become a momentous occasion. The budget proposals presented by the country’s Treasury had several surprises for some South African citizens.

The one thing that has been on many drivers’ lips since yesterday has been the carbon dioxide emissions tax that will be imposed on vehicles. Gone are the days of owning massive 4X4s, huge SUVs and ‘gas-guzzling’ cars with ease of conscious.

Well, I think it’s about time some drastic measure was taken. Not quite sure if it’s going to be good for the automotive industry though. Given the recession that South Africa is barely recovering from, this new green tax is sure to set the motor industry back quite a bit.

Obviously, that cannot be good for the economy. Yet, if it weren’t for their manufacturing of these giant vehicles there wouldn’t be nearly as much emissions as we’re currently experiencing. But is it not fair then that the industry will be set back? It’s about time we sacrificed a little on our side.

True, SA’s population cannot be compared to China’s and so we’re probably far less destructive. But we’re still contributing a substantial amount of emissions on a global scale. SA is placed 13^th in the world and 1^st in Africa in terms of countries causing the most emissions. That alone should be enough to implement this carbon dioxide green tax.

Green choices

This will very likely leave the door open for people to seriously think about alternatives. Why would anyone not consider an alternative when a huge chunk of their hard-earned cash is dedicated to off-setting the damage they cause to the environment? Come September vehicle buyers could be paying up to R24 750 on top of the retail price for their choice of vehicle.

According to the proposal documentation compiled by South Africa’s Finance Minister Pravin Gordhan stated that tax of R75 per gram of carbon dioxide emitted per kilometre will be levied on new passenger cars above 120g/km.

In other words, you will only pay tax on cars that emit more than 120 grams of carbon dioxide per kilometre. Why does this spell cash nightmares for large engine cars and utility vehicles buyers? Well, only 0.4% of passenger cars sold in South Africa fall into this environmentally friendly category.

Safe to say, when buying that brand new BIG car, be prepared to folk out a fortune and then some. I anticipate truckloads of motorists to be up in arms about this. How can they not be? No one wants to do away with the luxury and convenience of their own car. Well, hard luck. It’s time to pay the SARS piper.

Tumi Tladi